AirAsia Berhad ("AirAsia" or “the Company"), the holder of 42,666,667 Redeemable Convertible Preference Shares Series 1 of RM1.00 each (“RCPS”) in AirAsia X Berhad (“AAX”), has on 10 May 2013 converted the said 42,666,667 RCPS, on one-to-one basis, into 42,666,667 new Ordinary Shares of RM1.00 each (“OS”) in the share capital of AAX, without consideration ("Conversion").

AAX was incorporated in Malaysia on 19 May 2006 with an issued and paid-up capital of RM266,666,668.00 comprising 224,000,001 OS and 42,666,667 RCPS prior to the Conversion. The 42,666,667 RCPS was issued to the Company on 29 October 2007 and 9 July 2010 respectively for cash at par. Upon the Conversion, AirAsia is holding 18.35% equity interest in AAX.

The Conversion is not expected to have any effect on the issued and paid-up share capital or substantial shareholders’ shareholdings of AirAsia and is not expected to have any material effect on the net assets, gearing and earnings of the AirAsia group for the financial year ending 31 December 2013.

The Conversion is not subject to the approval of the shareholders of the Company and/or any other relevant government authorities in Malaysia.

This announcement is dated 10 May 2013.